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Unique Identification Authority of India (UIDAI) - Aadhaar Services – Benefits, Linking with PAN

Goverment Service
4 June, 2024
The Unique Identification Authority of India (UIDAI) was established by the Indian government to manage and operate the Aadhaar program. Aadhaar is an identification card that provides a unique identification number to every resident and citizen of India. It links individuals to their demographic and biometric data.
Unique Identification Authority of India (UIDAI) - Aadhaar Services – Benefits, Linking with PAN

The Unique Identification Authority of India (UIDAI) was established by the Government of India to manage and operate the Aadhaar program. Aadhaar is an identification card issued to every resident and citizen of India that provides a unique identification number linked to an individual's demographic and biometric data.

Aadhaar represents the Government of India's initiative to identify every single citizen in the nation. The UIDAI initiative was introduced in 2009 with the aim of assigning a unique identification number to each individual citizen in the country. It was established to prevent and eliminate fake or duplicate identities of residents and to enable access to various government subsidies and services for the people of India. Previously, a Permanent Account Number (PAN) or driver's license were common forms of identification in India; however, PANs are not issued to children or non-working spouses, and they have limited validity for tax purposes. In reality, few individuals enroll in these programs. Moreover, those without driver's licenses have no national identification number.

To maximize tax revenue collection, the Government of India implemented the "Aadhaar Card," a single number that could be used to track all 1.3 billion citizens simultaneously. The government contracted a firm to handle the registration process; after verifying identity and proof of address, the firm scans applicants' iris, fingerprints, and facial image before issuing the card.

Deadline set for linking Aadhaar and PAN by end of June On March 28, the Ministry of Finance announced that by the end of June, citizens must link their Aadhaar identification to their PAN, or taxpayer identification number. Taxpayers without a PAN link will no longer be permitted to use their PAN after July 1st and may face consequences like higher tax withholding and delayed tax refunds.

Exemptions apply to: (1) residents of the Union Territories of Assam, Meghalaya, and Jammu and Kashmir; (2) non-residents under the income tax law; (3) individuals age 80 or older in the prior year; and (4) non-Indian nationals.

Since the July 2017 announcement mandating the link, over 510 million people have completed the process. As of the end of March, 94% of the 541.54 million PANs issued to citizens were connected to Aadhaar. The final deadline for linking the two has been extended several times and was again extended this time. The original deadline was the end of March.

The government began issuing domestic citizens with a 12-digit national ID known as "Aadhaar" in September 2010. In addition to personal details, Aadhaar captures fingerprint data. It is used for school enrollment, passport and driver's license application, and cash payments during the coronavirus pandemic. As of the end of November 2022, the UIDAI reported that 1,351.07 million people had received their Aadhaar. Considering issues with linking Aadhaar and PAN data, the MoF notes some instances where an individual's name and date of birth do not match across registrations or where contact phone numbers differ. Reports describe problems encountered. Before this latest extension, UIDAI waived fees for correcting Aadhaar registration data online from March 15 to June 14 to address such problems. Efforts continue to resolve these issues. 

At its core, Aadhaar (UIDAI) represents Indian citizenship. Aadhaar is India's national biometric identity program that assigns each citizen a 12-digit unique identification number. Enrollment is voluntary. In Hindi, "aadhaar" means "foundation," underscoring Aadhaar's role as the basis of Indian society. Its use of biometric authentication utilizing advanced IT converts each citizen's facial features, fingerprints from both hands, and iris scans into data to uniquely identify them alongside other registrant details. It is estimated that 1.16 billion people, or over 99% of India's population, have enrolled.

What Advantages does Aadhaar (UIDAI) offer?

The Aadhaar (UIDAI) system provides several advantages to individuals in India. While participation is optional, many people choose to register for Aadhaar due to the lack of a comprehensive family registration system previously. India struggled with various negative consequences without such a system in place. For instance, the government distributed food, fertilizer and other social programs to underserved communities. However, in the absence of an identification verification process, large-scale fraud and identity theft occurred as fraudulent recipients engaged in such acts.

There were also many instances where assistance was lacking due to the inability to verify identities. Individuals were similarly unable to transfer money, open bank accounts or purchase cell phones without a means of verification. Consequently, people found it more difficult to participate in economic activity, perpetuating cycles of poverty. Nonetheless, lives improved in various ways following the digitization and registration of personal information in Aadhaar.

For example, Aadhaar helps guarantee timely payment of welfare benefits like food rations, disaster relief funds and scholarships distributed by the government. Estimates suggest it helped the government save approximately $7 billion by preventing fraud. It also facilitates registration for administrative services even for those unable to read or write. Participation can help improve credit scores and simplify school enrollment. The system further streamlines processes like financing, money transfers and bank account opening, supporting new business formation. It also enables mobile payments. Registration rates indicate boosted women's economic participation and status.

Overall, evidence shows Aadhaar benefits all sectors of society, not just underserved groups, by positively impacting education, welfare and the economy. While beginning as a program for disadvantaged communities, it now offers over 100 administrative services involving tax filing, SIM card purchases, banking, property records and online tickets.

The Aadhaar ID is required to access these services. Foreign residents staying in India over 182 days can also obtain an ID to conduct business or study. At peak capacity, Aadhaar can register up to two million individuals daily, necessitating rapid processing. It depends on advanced technology for operations, strong security of personal data, and accuracy to prevent fraud and duplicate registrations. As such, the Indian government selected the system developed by NEC, known for its technological expertise.

As NEC has studied fingerprint authentication for over 50 years, its biometric security technology is not entirely new. Evaluations found NEC’s facial recognition technology achieves the highest matching efficiency worldwide. Over 700 NEC systems across 70 countries use this, including 50 airports globally.

Eligibility for the Unique Identification Authority of India (UIDAI)

To be eligible for registration with the Unique Identification Authority of India (UIDAI), the following requirements must be met:

- Individuals must be citizens and residents of India.

- The person must have lived in India for 182 days or more. This applies to both local citizens and foreigners.

- There are no age restrictions or limitations for Indian citizens. All individuals, including adults, children, and elders, are eligible to register.

- Even infants can apply, with their guardians or parents enrolling them.

- Candidates must provide documentation and proof of identity, as this is essential and mandatory. Common forms of documentation include voter ID, passport, driver's license, utility bills, and ration cards.

- Non-residents of India are strictly ineligible to apply, as residency is a requirement.

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